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Arrendo, Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available: Initial

Arrendo, Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available: Initial capital investment Investment A Investment B Estimated useful life Estimated residual value Estimated annual net cash inflow for 10 years Required rate of return $106,000 $152,000 10 years 10 years 0 $28,000 $20,000 $47,000 10% 12% Calculate the payback period for Investment B. (Round your answer to two decimal places.) OA. 3.23 years OB. 3.9 years OC. 5.3 years OD. 1.9 years

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